The Digest is available for reading;

• (LUNA: Implodes after UST Losses Peg. Falls Below $27k. Stablecoin Regulation is in view

• USDT Loses 1 Peg in Stablecoin Crisis.

• Australia’s First ETFs Launch, Gathers $2 Million on Debut

• Warren Buffett-backed Digital Bank NuBank launches Bitcoin and Ether Trading

• Elon Musk tweet purchase underwent scrutiny following the SEC Report

After UST loses peg, Terra (LUNA), implodes, Bitcoin falls below $27k. Stablecoin Regulation is in view

It was a shock for the cryptocurrencyverse when TerraUSD (UST), its largest algorithmic stablecoin lost its $1 peg. But, no one was ready for Terra’s implosion (LUNA), and the ripple effects it had on the wider cryptocurrency market.

TerraUSD 7d Price Chart (UST). Source: CoinMarketCap

Terra (LUNA), a result of three days of the UST falling to parity with USD (falling as low $0.2998) caused it to collapse. In just 72 hours, LUNA lost 99% of it’s value. It dropped from $65 to $0.095.

Terra (LUNA), 7d price chart Source: CoinMarketCap

This shockwave rapidly spread to the wider crypto market. Bitcoin and altcoins suffered double-digit losses over the past three days. Bitcoin fell below $27,000 in the last 16 months. The global crypto market has lost $600 billion.

Bitcoin’s 7d Price Chart (BTC) Source: CoinMarketCap

Stablecoins have come under increased scrutiny since the UST scandal. The Federal Reserve has called stablecoins “risky” in its most recent financial report. On the other hand, the U.S. Congress has called for the regulation of “stablecoins.”

Flipsider:

• Do Kwon (Terra founder) has spoken out after the UST returned to $0.52. He offered a suggestion to reinstate the UST peg.

What You Need to Care About

The UST saga which affected crypto markets in general could lead to regulation.

USDT Tether Loses 1 Peg in Stablecoin Crisis.

The implosion in TerraUSD (UST) has increased the pressure on stablecoins and Tether (USDT), the most prominent dollar-pegged stablecoin (USDT) lost its $1 Peg.

On Thursday, Tether (USDT), which was trading at $0.9857 on Thursday, dropped by 3.3%. It fell as low as $0.9798 below its $1 target. While the stablecoin’s price has fallen some, its trading is at $0.9857.

Here is the 24 hour price chart for Tether (USDT). Source: CoinMarketCap

Despite the loss of parity with the USD, Tether’s CTO, Paolo Ardoino, announced on Twitter earlier today that Tether would continue to honor “USDT redemptions at 1$” via its website.

Tether, unlike the algorithmic stablecoin UST (which uses complicated codes to make new coins and destroy existing ones in order to keep a constant price at $1), is backed by

“83.74% cash and cash equivalent, 4.61% corporate bonds and precious metals, 5.27% of secured loans, and 6.38% of other investments.”

Flipsider:

• The Decentralized USD (USDD).Tether-killer – – – he has taken on the Multichain DEX with Tron DAO funding approximately$2billion to safeguard TRX.

What You Need to Care About

Tether’s $1 peg was likely lost due to low trust in stablecoins and weak sentiment.

Australia’s First ETFs Launch, Gathers $2 Million on Debut

After five years of waiting for Australia’s first spot cryptocurrency exchange traded funds (ETF), the wait has finally ended.

On Thursday, May 12, the Sydney-based ETF Securities’ spot bitcoin and ether ETFs, built in conjunction with Switzerland’s 21Shares, began trading on the Cboe Australia exchange.

In addition, Cosmos Asset Management’s bitcoin feeder ETF also launched on Thursday. These ETFs were however greeted with a slow start due to the decline in crypto markets.

Since their inception, approximately $2 million has been invested into the ETFs. The 21-share ETFs attracted investors inflows of approximately $954.925 (Bitcoin ETF), and $604,305(ETF). Cosmos Purpose Bitcoin Access Fund ETF (CBTC), received $454,002.

Flipsider:

• The following are some examples several disapprovals, global fund manager Grayscale has completed a ‘productive’ meeting with the SEC to convert its fund into a Spot Bitcoin ETF.

What You Need to Care About

Australia’s listings mark the latest stage in the globalization of exchange-traded products investing in “physical” cryptocurrency.

Warren Buffett-backed Digital Bank NuBank launches Bitcoin and Ether Trading

Nubank is the biggest digital bank in Brazil by market capital. It has added the ability for customers to purchase and sell Bitcoin (BTC), and Ethereum (ETH) through its platform.

Paxos is the blockchain infrastructure firm that provides NuBank with trading and custody services. NuBank will dedicate approximately 1% of its cash to bitcoin.

NuBank, which is backed by Warren Buffett’s Berkshire Hathaway Inc . (NYSE:) Previously, users were able to invest in cryptocurrency via exchange-traded fonds (ETFs).

NuBank says that all its customers will receive the pilot program by the end July according to NuBank.

Flipsider:

• Although users will be able to buy and sell crypto with Brazilian reals, the pilot doesn’t allow withdrawal or deposit of crypto.

What You Need to Care About

NuBank sees a rise in crypto adoption in Brazil and Latin America. This will be a positive development for the region.

Elon Musk tweet purchase underwent scrutiny following the SEC Report

On April 25, the world’s wealthiest man and self-aclaimed DOGE-Father announced the purchase of Twitter for $44 billion, promising drastic changes. According to reports, Musk’s purchase of the microblogging site is undergoing a lot of scrutiny in Washington.

Following a SEC report investigating Musk’s compliance with rules at the time he purchased his large stake in social media company, early April, scrutiny was conducted on the transactions.

SEC is investigating to see if Musk filed a form investors need when they acquire more than 5% of a company. Also, the Federal Trade Commission reviews Musk’s initial purchase of 9% shares in. Twitter Inc (NYSE:).

A Federal Trade Commission inquiry was also opened to see if the CEO met antitrust reporting obligations when he acquired his initial Twitter stake at 9%.

Flipsider:

• Elon Musk said that he would remove the Twitter ban on former president of the United States. Donald Trump.

What You Need to Care About

SEC Chair Gary Gensler has insisted that the rules on how investors must disclose that they’ve taken a major stake in a company be more strict and transparent.

Continue reading on DailyCoin